Chamber urges Budget action as firms ‘yet to feel’ economic improvement

Business leaders in Greater Birmingham today called on Chancellor John Healey to “turn positive headlines into sustained economic growth” by backing businesses in next month’s Budget. 

It follows the Chancellor’s speech yesterday in which he said the UK economy was “turning a corner” despite ongoing concerns of government borrowing costs.

Speaking at the Manufacturing Technology Centre in Coventry, the Chancellor provided an upbeat view of the state of the UK economy, building on a recent uptick in consumer and business confidence.

The Chancellor spoke of a “new story” of the economy not just turning a corner but being resilient, optimistic and “ready to seize the opportunities of new technologies and ideas”.

He also set out plans for greater fiscal devolution, a £150 million British Business Bank fund for scale-up businesses, and a commitment to cutting the burden of business regulation by 25 per cent by the end of the Parliament.

But with many firms still burdened by cost pressures, Greater Birmingham Chambers of Commerce said the Chancellor must use his 28 October Budget to deliver practical measures that give businesses breathing room to invest.

Head of policy Emily Stubbs (pictured) said: “While the latest growth figures suggest the UK economy is performing better than some comparable economies, businesses across Greater Birmingham are still facing significant cost pressures and many are yet to feel that improvement in their day-to-day operations.

“The £150 million fund announced today will provide welcome support for a number of innovative firms looking to scale. However, it is drawn from existing British Business Bank funding and, on its own, will not address the broader challenges facing businesses across the country.

“The Chancellor’s first Budget presents a critical opportunity to turn positive headlines into sustained economic growth.

“Businesses do not lack ambition, but many lack the breathing space to invest, recruit and expand.

“British Chambers of Commerce analysis shows domestic policy costs facing a typical SME have increased by more than 70 per cent over the past decade, with around a quarter of that rise coming since the 2024 Budget.

"That is why we are calling on the Government to back business, cut costs and deliver growth through practical, fiscally responsible measures, including reducing employer National Insurance contributions for under-25s, tackling energy and business rate pressures, and restoring locally delivered export support.

“Taken together, these measures would help unlock investment, support job creation and strengthen the conditions for sustainable growth across Greater Birmingham and the wider UK economy.”